I have had a look at likely costs coming up for the business and these and the additional payments required when my CBIL becomes payable are going to stress cash immensely. I am not sure that we can get through over the first few months when all staff return – what would be your suggestion on how we handle this?

Topic: Finance

Answer: Without 100% knowing your set up or industry I can’t be more specific than making these points:

1. Have you actually ‘crunched the numbers’ or are your fears about cash just a ‘gut feel’?
2. If the latter I would suggest you crunch the numbers to get accuracy.
3. Once you have an accurate picture it will allow you to make the right decisions in the circumstances.
4. Recognise that cash is ‘king’ and you must do all you can to protect cashflow – ensure that receivables are collected robustly and on time, are there some suppliers where you could negotiate longer payment terms – remember your business is important to them and they don’t want to see customers go – they may be in a position to offer you something.
5. What about your order book and pipeline – can you improve this position with some sound sales and marketing approaches.
6. Don’t shirk tough decisions about people – if you feel that you need to lose some people you must take the appropriate action. People will admire your honesty and openness too and provided thy are treated fairly and with compassion your business reputation will be retained.
7. If you have to lose people ensure that those remaining are treated with openness and honesty – the last feeling you want from those left, who are key to your future, thinking ‘It’s me next – I need to start looking’. Get close to those that remain.

Finally ask for help from your professional partners – e.g. talk to your bank, your accountant or talk further and more specifically to us.

Hope this helps.